Soundelux Enters Bankruptcy, Seeks Cash

This publicity image released by HBO shows Peter Dinklage, left, and Sophie Turner in a scene from "Game of Thrones." Todd-Soundelux, which recently filed for bankruptcy, has done sound for the TV show.

Helen Sloan/Associated Press/HBO

Shortly after seeking bankruptcy protection, Hollywood postproduction sound company Todd-Soundelux LLC is seeking immediate access to the cash it needs to keep its new reorganization afloat.

Todd-Soundelux, which has worked on such films and television shows as “Lone Survivor,” “Muppets Most Wanted” and “Game of Thrones,” says it’s struck a deal with lender PNC Bank to use the cash collateral securing the bank’s claims. It’s asking the Los Angeles bankruptcy court to approve the deal with PNC, which last year extended Todd-Soundelux a $5 million revolving loan.

In court papers filed Thursday, Todd-Soundelux Chairman David F. Alfonso warned of dire consequences should the company not secure access to the cash.

“The debtor must have the immediate use of any cash collateral to meet payroll obligations, to meet the daily costs and expenses of operating the business, to promptly pay vendors, and to acquire goods and services to keep their business operating. Any delay in the debtor’s ability to meet one or more of the aforementioned operating needs could deprive the debtor of its ability to successfully reorganize its financial affairs,” he said in the filing.

A company official and its bankruptcy lawyer couldn’t be reached for comment Thursday.

However, Deadline Hollywood reported that Todd-Soundelux filed for Chapter 11 protection Wednesday after closing two of its three facilities, leaving open its Burbank, Calif., office. The company’s bankruptcy lawyer told Deadline that about 30 of the company’s approximately 200 employees were laid off in connection with the office closures.

Todd-Soundelux, formed by the merger of two longstanding sound companies, Todd-AO and Soundelux, told the Hollywood Reporter that the company hopes to continue operating in Chapter 11 while it looks for a buyer. The bankruptcy filing was brought on by revenue declines, particularly related to its work providing sound services to feature films.

The company reported assets and debts each in the range of $1 million to $10 million in its Chapter 11 petition. Court papers show Todd-Soundelux is 100% owned by Empire Investment Holdings LLC, the Miami investment firm of which Mr. Alfonso is founder, chairman and chief executive.